How can you justify the Government (YOU & ME)bailing out those who can't afford increased home interest rates?

Question

Thirteen years ago we built our house and we paid it off in 6.
We bought a vacation home and paid it off.
We do not take out loans to buy our cars - we wait until we have the money.
We also own hunting land in 2 parts of the state.

WE WERE YOUNG AND POOR when we got married 25 years ago. We went without things until we could AFFORD them.
Today's SOCIALIST mentality is that EVERYONE deserves what everyone else has - even if they don't want to work as hard for it. HILLARY - "We will take things from you for the common good."

NO one GAVE us a break. We paid 10% interest on our first home mortgage which left us with a house that was smaller than my current deck. Yet, I did not look for the Government to get me a bigger home even though there were people on Goverment assistance living in bigger places than us.

We CHOSE to have our kids while we were young and knew it would be a struggle but we never ONCE looked to ANYONE to give us anything.

Answer 1

Sounds like the way I came up in this world with strong personal values and not relying on anyone. We make decisions and ask questions in this life. Yes, I did borrow money at the high interest rates for a mortgage too. No one helped me pay it off. I also paid my own way through college by working hard at low paying jobs. I never felt the government owed me anything. I still do not want to live in a socialist state. I believe wholeheartedly that universal health care is wrong and will not work. I do believe in helping those who are not physically or mentally capable of helping themselves. The rest of us do need affordable health care. Insurance companies are taking advantage, and I have seen this as a nurse many times.. I have also seen those who have taken advantage of the system. Illegals from different countries, and others. The mortgages in trouble should not have a hand out but perhaps and hand up. Some way of renegotiating loans. But absolutely not a bail out.
We are blessed with the chance to get an education in this country, and to be employable. Many of the Liberals who are not able to find work should remove the piercings, get a haircut and look presentable, then they won't need my money.
Good point and great question!

Ruth, I raised two children on my own, worked and went to classes without child support. That's no excuse!

Answer 2

I hear ya. But, don't be deluded. "Those people" nor the banks are being bailed out. Most of the real predatory brokers that were working close to the margins are bankrupt.
They dumped because they miscalculated real estate values.
Very few people are behind more than 90 days and they are losing their homes regardless.
There has been and influx of liquidity to prevent foreclosures but no one will profit from it and no one is going to get away with not paying.
They are only getting FHA insurance eligibility where they wouldn't before because they missed a payment or two.
The predatory lending institutions still in business will be forced to reorganize the loans so there is no call-ups of interest points not paid up front. New lenders will be insured.
Going forward, the lendees will not be able to pay principle or interest only. Those who can not, will be encouraged to sell, rather than lose it all.
They are not getting bailed out. They are getting a lesson in how to behave and the rest of us won't take a hit by a weakened economy. There is also a bill in congress that will raise the amount that the FHA can insure. That is not a bail out. The Democrats are calling it a bail out but, they are nevertheless voting for it. Makes me laugh.
Considering how you are invested, you should be rooting for this to work so your property values won't be affected by something that is not within the normal economic flow.
Yes, some of the FHA administration and debt service we are indeed paying for through our taxes but, the alternative is much worse and will be much more palpable in your pocket.

Answer 3

We shouldnt & Id blame these:
o The Fed finance policies.
o Home Mortgage Lending Industry.
o NO Finance Ed in schools or colleges.
o NO GED Home Econ classes.
o Undereducated Public.
o Crazy credit rating system.
o NO Uniform rules or guidelines.
o NO accountability esp among the Govt & the liberals.

I do take note of the Socialist issue in that we the Public should Take Back from the Govt ALL THE GOVT WASTE alone abused over the years.
Otherwise I agree with YOU totally.

NO the Govt must not bailout the mortage industry like it did Chrysler in the 80s.
Too Big to bailout OR now BUY a Home Really Cheap.

Maybe I can get my Dream Home in X Years after the Mortgage fallout..
Maybe 2019??

Answer 4

NO BAIL OUT My Wife and I bought our Dream Vacation/Retirement House in the middle of all the low interest great deal mortgage Hype and didn't fall for it since we always payed our own way we have excellent credit we didn't go for more than we could afford and got a great rate on a 30yr fixed rate mortgage now all these people who figured they could get way more house than they could afford and figured they could sell them before the big payments hit and make a bunch of money got caught with their pants down when they couldn't sell them so then they try to refinance to a fixed rate and found out with a slow real estate market that they owned to much to convert it over so they are cutting and running Now to me this is called a Free Market adjustment and according to everything I have read this is less then 3 percent of the home mortgages but since it is Election time it is being over blown to garner votes All this doom and gloom over how it will cause a recession is Bull I say let People be responsible for their own actions it's time they grew up and sucked it up and fixed it themselves Otherwise the next time the Stock market has an adjustment they will want to give all the individual investors who lost money their money back because they bought the wrong stock Live with and learn by your mistakes and stay out of my pocket

Answer 5

Good for you! And, you are absolutely right, the plan should always be, "You break it, you bought it!"
My wife and I took low paying jobs when I got out of the military. We were young with not much education and not many skills.
My blue collar skills and my wife's drive served us well. I put her through college and then we worked together to put her through Law School. I worked 2 jobs and she worked during the summer. Not only did we not get aid for her education, but the cost of it was not even tax deductible.
When my wife finally retired, we bought a second home and are trying to get this one sold. Yes, the market is the pits, but you know what? We stayed within our budget when we bought the retirement home, so all we have to do is wait. We will remodel the older home AFTER ours sells.
By the way, my 90 year old mother lives on Social Security and a tiny pension from my Dad's job. She owns her own home, pays all of her bills, and SAVES money with an income of only about $11k a year!

Answer 6

I've got some agreement with you, but surely the purpose of higher interest rates isn't to bankrupt property speculators. One thing we don't need in my opinion is any stronger pound at the moment. We don't want to price manufacturers out of the competition. Inflation will rise then peak, and fall back again. Because of public sector job cuts, unemployment and lack of union muscle in most sectors - there is little risk of a price/pay spiral.

Answer 7

I believe what they want is if your mortgage is renegotiated from 100,000 to 75,000, the government use to charge you tax on that 25,000, which could be almost 10,000 up front, which you'd have to pay, preventing you from renegotiating and getting out of debt. Allowing some of the poorest, and irresponsible families to renegotiate but not pay the 10,000 in taxes that would result may not be a bad idea. It's not as though they were going to pay the government 10,000, they wouldn't have to if they just didn't pay the loan at all. It's almost like a penalty for trying to get out of debt.

To your other comments, it's great that you have lived a responsible life with your money, and you get the effects of that. You sleep well, you're not ashamed, and you're probably very level headed. Those are things money can't buy. I try to do the same things and that moderation helps me sleep well at night. But for those who fail, I don't think we need government tax rules punishing them further, or making bankrupsy look better than renegotiations.

Answer 8

I agree. I am opposed to any bailouts in the housing industry. Democrats are constantly promising government help, but it is only to buy votes and get campaign contributions.
People need to take care of themselves. Everyone faces misfortune at one time or another. If one gets knocked down, get up and start over.
I have been penniless at least four times in my life. I never asked anyone for anything. I overcame physical and mental illness. I was able to retire early at age 57. I have a few bucks in the bank. Now, I am happier than a pig in shiite.
I have no special talents or abilities. If I can succeed, just about everyone can.

Answer 9

just be sure and spread the risk evenly.

those who made those loans in error should also be left to founder in our free market.

to help the corporations and not the individual is not only a mistake and a miscarriage of justice - but a very foolish political move.

Answer 10

Yes, but there are so many of these bad loans that when they all default, some banks will fail. Something needs to be done to prop up the banking system because of the scale of the problem. Already we are heading into a serious recession. We need to make sure it doesn't become a depression.

This wouldn't be the case if everyone had a home economy like you and me. It also wouldn't have happened if bankers hadn't given out such bad loans. But, right now, we need to focus on preventing an economic disaster. Our banking system needs a bailout, and needs it now.